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154,000 Federal Workers Take Trump Buyout Offer

Marco Sorenson by Marco Sorenson
July 31, 2025
in Economics
154,000 Federal Workers Take Trump Buyout Offer

The Trump administration has accepted buyout packages from approximately 154,000 federal employees in 2025 according to a knowledgeable source which represents one of the biggest civil service reductions in decades.

The voluntary resignation program initiated in January received backing from Elon Musk to provide extended compensation benefits to departing employees. The workforce reduction across Agriculture to IRS departments totals 6.7% of the entire civilian federal workforce.

The Trump administration together with his advisors work to simplify government operations through this initiative. The employees chose to take the packages because they believed their positions would be terminated. Thousands of federal employees who joined the government after the initial offer period ended received termination notices.

The fast-paced reduction in personnel threatens to diminish the operational capabilities of government institutions. The combination of extensive employee departures with significant workforce reductions will lead to substantial institutional knowledge loss according to Don Moynihan from the University of Michigan’s Ford School.

The federal government experienced a 5.9% employee departure rate during 2023. The current rate of departures indicates the government will experience its most significant staffing reduction in multiple years.

Cabinet officials have announced additional cuts will follow as Trump continues his mission to transform federal agencies and gain control over essential government operations.

Tags: tariffsTrump
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